NZD/USD Technical Analysis October 25, 2011

NZD/USD rose on Monday as traders bought back into the “risk on” trade. The Kiwi is a commodity currency, so the move makes sense to us. The 0.8000 level has given way, but it appears that the 0.81 level might be the top of that resistance area. The resulting candle looks somewhat like a shooting star, but is a bit too thick to actually considered one. The set up is fairly simple: buying this pair on a break of the Monday highs is considered a decent long opportunity, while the breaking back down below 0.8000 would have us bearish.